President Bush
calls to drill for more oil as some solution to the oil crisis. Last I checked when oil prices were cheap we drove bigger cars farther and never spoke about it; US oil consumption has grown and grown. Now, in light of expensive oil prices we're seeing significant decreases in demand. So why would a marginal increase in the supply of oil, especially without any new domestic refining capacity, really make any difference to oil prices at all? It feels like the US is lead by blind leadership.
Check out this nice little chart of the impact that OPEC has had on the oil prices since they
doubled their output. If adding 15,000,000 barrels of oil to the market didn't decrease oil prices then what would our meager 30,000, 0r 300,000 additional barrels do?
Even more humorously, it seems that only Iran's President,
Mahmoud Ahmadinejad, seems to have more of a clue than our own leadership...
Your thoughts?
2 comments:
both are firebrands with dubious credibility. To revive a phrase I'm quite fond of: "You are being lied to."
the numbers are interesting, as is the speculation/weak dollar argument. I'd be interested to hear some roughly apolitical institution's take on it.
Of course I agree that both parties have a vested interest in their view. My point is that drilling for more oil is a red herring.
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